Wednesday, August 19, 2009

Hello there.Let's talk about irregular correction ABC's. An irregular correction is when the "b" wave tops higher then previous wave "a" high. This is a perfect bull trap because when we think the market will move higher, he starts correcting on a tremendous "c" wave down.Now, "c" waves usually respects certain Fibonacci ratios based on "a" price movement. It can be:c = ac = 1,618*ac = 2,618*aWith that in mind and assuming that the nasdaq is making an irregular corrective abc, with a little math c = 1,618*a=75,07 points. the market has done 76,4... pretty close.

Hi friends. Had to change my count for a little more bear view. The "respectable" channel was seriously violated, and for now i anticipate at least one more leg down.Don't get fooled. Primary trend is still up so i won't recommend any kind of short positions in this market. I think 38% fibo around 62,50 may be a sweet spot to start taking long positions again.Same goes to Nasdaq. If my wave degrees were correct we should resume the trend shortly. If not, then blue is rose and rose is yellow, meaning that we could hit the 50 or the 61,8 fibo next week.

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